Crude Steady After Nearly Two Week Rally

Crude holding steady near the highest since 13 Feb after recovering late in the day yesterday to continue the rally since 22 Feb. Focus remains on China demand, central bank tightening and Russian oil out.

• Brent MAY 23 up 0.1% at 86.26$/bbl
• WTI APR 23 up 0.1% at 80.53$/bbl
• Gasoil MAR 23 up 0.9% at 850$/mt
• WTI-Brent up 0.05$/bbl at -5.63$/bbl
• US Feb Chair Powell will later appear before the Senate banking panel with the market watching for clues on future interest rate hikes. Concern that more tightening could impact global economic growth and future oil demand.
• Russian oil exports are robust despite the EU and G7 sanctions and are not yet showing a decline due to the announced 500kbpd cut in production during March according to Gunvor.
• Indicators have suggested the start of a recovery in China demand so far this year but crude imports declined in Jan and Feb from the previous year. Government data showed refiners slowed purchases ahead of the Lunar New Year to help manage stocks.
  • Brent MAY 23-JUN 23 up 0.02$/bbl at 0.58$/bbl
  • Brent JUN 23-DEC 23 up 0.04$/bbl at 2.87$/bbl
• Crude time spreads remain largely unchanged today with Dec23-Dec24 up near the highest since late Jan. The upwards move in near term spreads was more muted yesterday but the prompt spread is steady just below the highest since November.
• Gasoline cracks continued to rally yesterday driven by a gradual rebound in US demand this year and a strong US refinery maintenance season ahead of the upcoming US driving season. Weak demand for diesel, stronger than expected Russian product output and building inventories are pushing diesel crack spreads lower.
  • US gasoline crack down -0.1$/bbl at 36.82$/bbl
  • US ULSD crack down -0.4$/bbl at 40.5$/bbl